* U.S. to impose 10 pct tariffs on $200 bln of Chinese goods
* Spot gold may break support at $1,247/oz - technicals
* SPDR holdings fell 0.22 pct on Tuesday
* Palladium falls to two-week low
(Adds comment and updates prices)
By Karen Rodrigues
BENGALURU, July 11 (Reuters) - Gold prices fell on Wednesday
as the dollar firmed against the yuan after the United States
threatened to impose additional tariffs on Chinese goods,
escalating trade tensions between the world's two largest
economies.
The Trump administration raised the stakes in its trade
dispute with China, threatening 10 percent tariffs on a list of
$200 billion worth of Chinese imports.
The news comes after Washington imposed 25 percent tariffs
on $34 billion of Chinese imports last week. Beijing responded
immediately with matching tariffs on the same value of U.S.
goods exported to China.
Spot gold was 0.3 percent lower at $1,251.43 an ounce
at 0710 GMT. In the previous session, the bullion hit a one-week
low at $1,246.81 an ounce.
U.S. gold futures for August delivery were 0.3
percent lower at $1,252.30 an ounce.
The offshore Chinese yuan fell as low as 6.6918 per dollar
, down more than 0.5 percent from late U.S. levels and
edging near its 11-month low of 6.7344 touched on July 3.
A firmer greenback makes bullion expensive for holders of
other currencies as the commodity is priced in dollars.
It's risk-off and that put the dollar on the front foot and
triggered commodities lower, a Hong Kong-based trader said.
"With these tariffs, gold has not reacted well as a
safe-haven in the past so the metal is under pressure," the
trader added.
Spot gold may break a support at $1,247 per ounce and fall
more towards the next support at $1,237 as it has completed a
bounce from the July 3 low of $1,237.32, Reuters technicals
analyst Wang Tao said.
"When trade war risk escalates investors run for cover... I
always have gold as a hedge but it's been more challenging to
have this view when the U.S. dollar is attracting haven flows,"
said Stephen Innes, APAC trading head at OANDA.
Meanwhile, holdings of the world's largest gold-backed
exchange-traded fund, SPDR Gold Shares , fell 0.22 percent
to 799.02 tonnes on Tuesday.
Among other precious metals, silver shed 0.8 percent
to $15.92 an ounce and platinum was 0.5 percent lower at
$837.70 per ounce. Earlier in the session, both the metals fell
to their lowest since July 3.
Palladium was down 0.4 percent at $938.03 per ounce,
after earlier falling to a two-week low at $934.35.
(Reporting by Karen Rodrigues in Bengaluru; editing by Eric
Meijer and Subhranshu Sahu)